Do I Have to Have Collision Car Insurance In Alaska?
Reader’s Question:
I haven’t purchased a car yet but I would most likely get it through a loan. Why is it that most lenders would require me to have collision coverage on my car ins here in Alaska?
Sasha
Anchorage, AK
There are two basic types of car ins here in the US; they are collision and liability insurance coverage. In almost all of the states, including Alaska, it is required for car owners to have liability coverage. It is not required for a car owner to have collision coverage; however, most lenders would require you to get collision coverage if you have not finished paying the loan on your vehicle.
Collision coverage is a type of car ins policy that would cover the damages to your vehicle if you get into an accident with another vehicle or property wherein you are at-fault. If you only have liability insurance, you would have to pay for the repairs on the car on your own and that could be costly on your part. For that reason, getting collision coverage for your car ins would be a wise idea for your lease car.
One other type of car ins coverage that may be required by lenders on your lease car would be comprehensive coverage. This would pay for the repairs on your vehicle is it gets damaged by natural causes such as flood, fire, storm; it also covers vandalism and theft. The premium payment for your collision and comprehensive coverage is influenced by the deductible that you will pay should you file a car ins claim.
Tags: car ins, car insurance, collision coverage, comprehensive coverage, liability coverage
Do I Need To Have Rental Car Insurance in Alaska?
Reader’s Question:
I have rental car coverage from my auto insurance but I really don’t know its restrictions. Would it still make sense if I buy some kind of waivers from a rental car company to replace my insurance coverage?
Mackenzie
Anchorage, AK
Seeming sensible from the coverage you receive from your auto insurance and the waivers that are sold by rental vehicle companies is not simple. Purchasing all of the coverage available from a rental vehicle company could amplify your rental fees. Purchasing nothing may place you in an awful financial situation in case of an accident.
In case you do not have comprehensive and collision coverage and you rent a vehicle, it would be a great plan to buy the loss damage waivers or collision damage waivers, any of which the rental vehicle company sells. Purchasing the waiver that will give you the widest coverage may be a good idea. Rental vehicle companies have a number of stages of damage waivers. For instance: you may not be liable for any damage; you are liable for damage over $500; you are liable for damage over $1,000.
You may completely turn down loss damage waivers in case you have comprehensive and collision insurance since you will pay for “double coverage.” However, keep in mind that you need to pay your deductible if the vehicle is stolen, damaged or if you crash the car.
Do You Want Cheaper Auto Insurance Rates in Alaska?
Reader’s Question:
I haven’t paid too much attention on our auto insurance until now because we’d want to save as much as we could. In what ways do you think I can be able to have cheaper auto insurance here in Alaska?
Laken
Anchorage, AK
The first thing that you could to do have cheaper premiums on your auto insurance in Alaska is to review your policy. After that, you may speak with an insurance agent regarding the deductibles on your policy and coverage choices on each kind of required coverage. The most important ones include basic, collision and comprehensive coverage and of course, uninsured motorist coverage would cost extra. You may ask your agent or the auto insurance company itself for different quotes with specific groupings of coverage as well as deductibles.
You may also reduce your basic insurance coverage to the least amount that you feel secure with. In the state of Alaska, the minimum amount would be $50,000 per person and $100,000 per accident, which would be the payment the insurance provider would cover for every injured individual, and its overall cost. At times, this involves medical expenditures that, again, would have additional cost. You may opt to lessen your property damage coverage as well to the least amount required. Lastly, get as high deductibles as you can for comprehensive and collision coverage and observe the amount that you can save. Say, a deductible of $1000 would save you over $20 each month against a deductible of $500, it more likely wiser to get higher deductible.